Introduction
U.S. M&A activity slowly rebounded in the third quarter of 2020 from the pandemic-shocked levels seen in the second quarter and reached pre-pandemic levels of activity in the fourth quarter. In the second half of 2020, reported TEV/EBITDA multiples on private equity transactions across all tranches of enterprise value remained fairly consistent with observed multiples in the first half of the year. Multiples in the middle two tranches did increase during the fourth quarter, which is likely a result of increased buyer demand towards the end of the year. Overall, multiples for both strategic and private equity deals were down slightly from levels observed in 2019, and overall activity in 2020 was still considerably below levels observed in 2019 given the economic impact of the pandemic on both acquirers and target companies. Levels of activity observed in the second half of 2020 suggest that buyer and seller appetite for transactions is beginning to return.
Also in This Issue
U.S. Deal Value & Volume
EBITDA Multiples
EBITDA Multiples by Buyer Type
U.S. Deal Volume by Industry
Debt Multiples
Number of Deals by Buyer Type